A Process to Have Bitcoin Mining Banned Begins in NY

A Process to Have Bitcoin Mining Banned Begins in NY

Senior government officials from Plattsburgh, an upstate town located in the state of New York, have kickstarted efforts to have mining of Bitcoins completely restricted in that region.

Preserving the Electricity for Development

Bitcoin mining is not your ordinary activity, as it tends to consume much electric power. Plattsburgh, a town located in the county of Clinton, New York State is known for its cheap electric power; something that makes it a good place for Bitcoin mining.

This little-known town has grabbed the headline with so many topics, the latest one being its newfound fame in a Showtime series that talks about an escape from a local prison, and featuring Ben Stiller. The other topic that is also making headlines from the town is the mining of the largest cryptocurrency, Bitcoin. This has come at a time when there are fears laced with speculations that the main supply of electric power that Plattsburgh relies on upon could be depleted.

Cheap Electrical Power

As earlier indicated, Plattsburgh takes great pride in its most affordable electric power prices. It is one of the towns that have the lowest energy prices in the whole of United States of America. This has been attributed to the fact that the town is close to St Lawrence River, where it stems its hydroelectric power.
The dams that the river currently had were created almost seven decades ago, and since that time, the town has recorded reduced rates of electrical power for a fixed supply.

Although the Bitcoin miners in the city are taking advantage of this, the current mayor of the city is not happy. In a statement released to the press, Mr. Colin Read who is the current mayor appeared to be crying foul.

He lamented that with their extra power, they are placed over their threshold of the ratepayers and each winter.

A Threat to the Mining Operations

The efforts to have mining of Bitcoin banned in this town are largely seen to threaten some of the Bitcoin mining agencies operating within. One of these mining operation businesses is the Plattsburgh BTC, a twenty-computer corporation owned by David Bowen and operating in a former paper warehouse.

Bowen started the business back in 2014 when he noticed there was a great mining opportunity in the town due to the cheap electric power. He has not stopped ever since.

Because of the power of passing information, other interested parties heard how the business is thriving in the town and decided to give it a try. They have become Bowen’s neighbors for a long time.

Unknown Fate

With the current happenings, the fate of these business people now hangs in the balance. Based on the reports that were released by the town’s top officials, 10% of the power generated in Plattsburgh is eaten up by Bitcoin mining.

This, according to Mayor Colin Read, is the reason why the city has decided to buy power from the open source market. This has serious disadvantages, as the market rates are quite higher when compared to the rate base.